The 55-year-old father of five children, two of whom are in school, Chork is a local farmer residing in the Moung Russey district of Battambang province. He grows rice and sesame with the help from his wife in order to meet their daily living costs. He has been engaged in this business for 12 years and is able to earn up to 20,000 KHR per day. This is the fourth loan cycle for Chork with VisionFund, Kiva’s partner. The past loans helped him to manage his living in a proper way and gradually to build better support for his business. Now, he is part of a group of three. His two fellow group members are second-time borrowers. He is seeking a loan of 1,400,000 KHR, and each of them is applying for 1,200,000 KHR. As the leader, he is going to use his loan to pay for harvesting costs, to buy seed and insecticide, and to pay for labor fees. He hopes to harvest his cash crop on time and treble his yield, so that he can make a good living and replant his crop in season and maintain his living standards.
About VisionFund Cambodia
VisionFund Cambodia is a Christian organization and microfinance institution that provides small loans and other financial services to improve the lives of children, empower poor women and their families, and grow successful businesses. The organization works primarily in rural parts of Cambodia and has distinguished itself by targeting the very poor who require smaller loan sizes, regardless of religious beliefs, gender or ethnic background.
Kiva lenders’ funds will help the organization to expand into the northeastern provinces of the country, which have historically been underserved and difficult to reach with financial services.
This is a Group Loan
In a group loan, each member of the group receives an individual loan but is part of a larger group of individuals. The group is there to provide support to the members and to provide a system of peer pressure, but groups may or may not be formally bound by a group guarantee. In cases where there is a group guarantee, members of the group are responsible for paying back the loans of their fellow group members in the case of delinquency or default.
Kiva's Field Partners typically feature one borrower from a group. The loan description, sector, and other attributes for a group loan profile are determined by the featured borrower's loan. The other members of the group are not required to use their loans for the same purpose.